In a new report, Deutsche Bank analyst Karl Keirstead takes a close look at the public cloud infrastructure market. Keirstead gives his take on the two largest cloud competitors and how much disruption they will cause in the IT space.

AWS

Keirstead calls Amazon Web Services (AWS) the “fastest-growing enterprise technology company y in history.” The impact of this growth has been apparent in Amazon’s share price, which is up about 60 percent since the company first started disclosing AWS financials in Q1 of 2015.

Deutsche Bank is estimating $16 billion in revenue for AWS in 2017. Assigning a 10x multiple on this revenue yields an enterprise valuation of about $160 billion.

“While many investors are already long Amazon shares on an AWS-centric thesis, we conclude that this is by no means a consensus thesis yet and that Amazon shares are likely to continue to outperform as investors increasingly recognize the value of AWS,” Keirstead explains.

Azure

According to Deutsche Bank, Microsoft is…

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